Greenbrier Companies (GBX) Gains As Market Dips: What You Should Know
In the latest trading session, Greenbrier Companies (GBX) closed at $43.25, marking a +0.25% move from the previous day. This move outpaced the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 0.66%.
Prior to today's trading, shares of the maker of railroad freight car equipment had gained 10.28% over the past month. This has outpaced the Transportation sector's loss of 1.56% and the S&P 500's loss of 5.92% in that time.
Greenbrier Companies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.10, up 135.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $578.8 million, up 95.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.28 per share and revenue of $2.58 billion. These totals would mark changes of +107.27% and +47.43%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Greenbrier Companies. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Greenbrier Companies is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Greenbrier Companies's current valuation metrics, including its Forward P/E ratio of 18.9. This represents a premium compared to its industry's average Forward P/E of 11.98.
Investors should also note that GBX has a PEG ratio of 2.7 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GBX's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Transportation - Equipment and Leasing industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GBX in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Greenbrier Companies, Inc. The (GBX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
